An exception is where your super isn’t in a regulated fund, approved deposit fund or an exempt public sector scheme. Your trustee can claim super not held in these types of funds. Refer to your super fund provider if you are unsure which type of fund your super is in.

Super you receive as income:During bankruptcy, super you receive as an income stream (e.g. a pension) forms part of your assessable income. If your income is over a set amount, you may need to make compulsory payments[?].

Self-managed super fundsSomeone who is bankrupt can’t be a trustee of a self-managed super fund. If you have a self-managed fund you must advise your trustee. You must cease acting in this position and notify the ATO within 28 days. See the ATO website for more information on removing yourself as a trustee.

How are compensation payments treated?

Whether you can keep compensation you receive, depends on the type of payment. When you receive a compensation payment, you must inform your trustee. Your trustee can request supporting documents to determine whether they will claim it. If they claim it, they can use it to help repay your debts.

Note: This information is a guide only, as the legal treatment of these payments can be complex. You may wish to seek your own legal advice.

Your trustee is not able to claim:

compensation for personal injury or wrong done to you or your family. For example, payments for an injury due to a car accident.

life insurance or endowment payments that you/your partner receive after you became bankrupt.

life insurance or endowment payments that you/your partner receive before you became bankrupt.

compensation payments you receive that do not relate to personal injury or wrong done to you. For example, payments for illness that is not a result of a personal injury.

If you are unsure what the compensation was for, we encourage you to get your own legal advice.

What happens if I receive an inheritance?

If you receive an inheritance, your trustee is able to claim this to help repay your debts. This applies if the right to an inheritance arises before or during your bankruptcy.

You, or the executor of the will must notify your trustee of the inheritance within 14 days of becoming aware of the entitlement. If you receive the inheritance before your bankruptcy begins, you will need to put this information in your application. When you enter bankruptcy, your trustee can request supporting documents.

The Bankruptcy Act[?] does not impose any restrictions to prevent you being an executor of a will during bankruptcy.

Can I buy/be given shares?

Shares and dividends are assets that the trustee can claim. This also applies to restricted shares and shares in your employer's business or a private company.